Haryana ACB Arrests Jeweller in Rs 590 Crore Bank Fraud Case, 12th Detention
Panchkula: In a significant development in a high-profile corruption case, the Haryana State Vigilance and Anti-Corruption Bureau (ACB) has arrested Rajan Katodia, the proprietor of Sawan Jewellers, on Saturday. This arrest marks the 12th detention in connection with an alleged Rs 590 crore fraud linked to IDFC First Bank, uncovering a complex web of financial irregularities and money laundering activities.
Arrest and Legal Proceedings
Officials confirmed that Rajan Katodia was taken into custody after completing all necessary legal formalities. He is scheduled to be produced in court on Sunday, where the ACB will seek police remand for intensive interrogation. The bureau aims to unravel the broader network involved in the scam and identify other individuals who may have played a role in the conspiracy.
Investigation Findings and Money Trail
According to the ACB, preliminary investigations have revealed that Sawan Jewellers allegedly received over Rs 250 crore from several companies and firms associated with key accused individuals, including Ribhav Rishi, Abhay Kumar, Abhishek Singla, and Swati Singla. The funds are suspected to have been illegally diverted from government accounts into shell companies, facilitating a sophisticated money laundering operation.
Rajan Katodia is accused of handling cash conversion for the main accused and earning substantial commissions for his services. To legitimize the influx of funds into his firm, he allegedly fabricated sales records of gold items under the names of companies linked to the accused. Additionally, investigators discovered that Sawan Jewellers received money through unauthorized channels from entities such as Cap Co Fintech Services, SRR Planning Gurus Pvt Ltd, and Swastik Desh Project, among others.
Evidence collected so far indicates that Katodia played a crucial role from the early stages of the fraud, involving himself in the planning and execution of the conspiracy according to a pre-decided strategy.
Government Action and Committee Probe
The case gained momentum after the Haryana government constituted a three-member committee on February 11, 2026, to examine the irregularities. Based on its inquiry, the government directed the ACB to register an FIR, which was filed on February 23, 2026.
The committee's probe uncovered several alarming discrepancies, including cheques and debit notes processed using forged signatures of former director general D K Behera, who had retired in October 2025. In one instance, a cheque was honored by the bank despite a mismatch between the amount in figures (Rs 2.50 crore) and the amount written in words.
Bank records further revealed that approximately Rs 46.5 crore was transferred from an IDFC First Bank account to an AU Small Finance Bank account. However, the ACB reported that AU Bank failed to provide complete supporting documents despite repeated requests, hindering the investigation.
Scope of the Fraud and Legal Charges
Preliminary investigations suggest that funds were siphoned from multiple government departments, including the Haryana State Pollution Control Board and the Panchkula Municipal Corporation. The suspects have been booked under the Prevention of Corruption Act and various sections of the Bhartiya Nyaya Sanhita (BNS). Officials suspect that unidentified bank staff and government officials may also be involved in the conspiracy, highlighting the need for a thorough probe.
This arrest underscores the ongoing efforts by authorities to combat corruption and financial crimes in Haryana, with the ACB continuing its investigation to bring all perpetrators to justice.
